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The Honourable Jim Flaherty, Minister of Finance, issued the
following statement today at the conclusion of meetings in
Toronto to discuss the global financial crisis with his
provincial and territorial counterparts:

"Today's meetings offered an important and productive
exchange of views on how Canada's Finance Ministers can work
together to address the consequences of the unprecedented
turmoil affecting global financial markets.

"Our meetings began with an overview of the state of the
Canadian economy by Bank of Canada Governor Mark Carney, and a
recap of measures taken by the federal government to ensure that
Canada's financial system, the soundest in the world, is not put
at risk by global events.

"Overall, Canada is at a distinct advantage in dealing with
the ongoing crisis, with our economic fundamentals among the
best in the world and a range of proactive stimulative measures
in effect. These were taken in 2007 at the first signs of global
stress and include $21 billion in incremental tax relief this
year, which is equivalent to 1.4 per cent of our GDP.

"Finance Ministers committed to working together to preserve
our economic and fiscal advantage. Canadians have worked hard to
earn this advantage—and to reap its rewards. They don't expect
their governments to sit idly by while these gains slip away as
a result of developments that originated beyond our borders.

"We will work together to continue to invest strategically in
things like infrastructure that will help leverage this economic
advantage through difficult times.

"As Finance Minister for all Canadians, I committed to
continue ensuring that taxpayer dollars are spent efficiently
and effectively. I also assured my counterparts that transfers
in support of health and social programs, which this government
has increased, will continue to grow as promised in our fiscal
balance plan. Total support for provinces and territories
reached an unprecedented level of over $54 billion this year
alone.

"Equalization will also continue to grow, but with the
measures that I announced in today's meeting, it will now do so
at a sustainable rate. Specifically, the Government of Canada
will put Equalization on a new growth path to ensure that it
grows in line with the economy. Equalization in 2009-10 will
reach $14.2 billion. I provided provinces with their
Equalization figures for 2009-10.

Equalization
grows to $14.2 billion in 2009-10 from $13.6 billion in 2008-09

Receiving Provinces ($ millions)

Year

P.E.I.

N.S.*

N.B.

Que.

Ont.

Man.

2008-09

322

1,571

1,584

8,028

0

2,063

2009-10

340

1,571

1,689

8,355

347

2,063

*Figures for Nova Scotia include both Equalization and
offsets.

"I also continued to urge provinces and territories to
address interprovincial barriers and inefficiencies, with
particular emphasis on making progress towards a common
securities regulator. Now more than ever, a stronger, more
efficient economic union is critical to securing Canada's full
economic potential. Like many Canadians, I find it unacceptable
that the countries of the European Union are more efficiently
integrated in many significant respects than the provinces and
territories in our federation.

"These meetings provided an important opportunity to hear
from the provinces and territories in the lead-up to the
November 10, 2008 First Ministers Meeting proposed in the Prime
Minister's plan to address the financial crisis.

"Their views will inform Canada's position as the Prime
Minister and I head to Washington later this month to work with
our international partners to find ways to address these
challenges collectively."

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For further information, media may contact:

Chisholm PothierPress SecretaryOffice of the Minister of Finance613-996-7861